in the united states district court for the ......2016/07/29 · the cid had a return date of april...

Case 3:16-mc-00045-MMH-JRK Document 1 Filed 07/29/16 of 17 PageID 1

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA

JACKSONVILLE DIVISION

) FEDERAL TRADE COMMISSION, )

) Petitioner, )

) Misc. No. ________________ v. )

) AFR FINANCIAL LLC, )

) Respondent. )

) )

PETITION OF THE FEDERAL TRADE COMMISSION FOR AN ORDER ENFORCING ADMINISTRATIVE INVESTIGATIVE PROCESS

AND MEMORANDUM OF LAW

The Federal Trade Commission (FTC) petitions this Court under Section 20 of the

Federal Trade Commission Act (FTC Act), 15 U.S.C. § 57b-1, for an order requiring

Respondent, AFR Financial LLC (AFR Financial), to comply with a Civil Investigative

Demand (CID), a form of administrative compulsory process. The CID was issued in the

course of a nonpublic investigation concerning possible violations by AFR Financial, a

debt collection firm, of Section 5 of the FTC Act, 15 U.S.C. § 45(a), and provisions of

the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p. The CID

directs AFR Financial to respond to 14 interrogatories and 4 document requests

concerning its purchase of debt portfolios from third parties, its attempts to collect on the

consumer loans listed in those portfolios, and its efforts to verify the validity of those

loans. The CID had a return date of April 8, 2016.

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AFR Financial has not responded to the CID. FTC staff has repeatedly contacted

the company, to no avail, regarding its non-compliance. The Commission therefore asks

this Court to order AFR Financial to appear and show cause why it should not comply

with the CID in full.

This proceeding is summary in nature and is properly instituted by a petition and

order to show cause (rather than a complaint and summons). See, e.g., United States v.

Elmes, 532 F.3d 1138, 1141-45 (11th Cir. 2008); United States v. Markwood, 48 F.3d

969, 981-82 (6th Cir. 1995); Appeal of FTC Line of Bus. Report Litig., 595 F.2d 685,

704-05 (D.C. Cir. 1978). Discovery or evidentiary hearings are granted only in

exceptional circumstances. See, e.g., FTC v. Carter, 636 F.2d 781, 789 (D.C. Cir. 1980);

FTC v. MacArthur, 532 F.2d 1135, 1141-42 (7th Cir. 1976); Genuine Parts Co. v. FTC,

445 F.2d 1382, 1388 (5th Cir. 1971).

A declaration under penalty of perjury by FTC attorney Michael E. Tankersley,

which verifies the allegations of this Petition, is attached hereto as Petition Exhibit (“Pet.

Exh.”) 1. The Commission also submits the following additional exhibits:

Pet. Exh. 2 Records of Florida Secretary of State, Division of Corporations (accessed July 27, 2016)

Pet. Exh. 3 Records of Florida Office of Financial Regulation (accessed July 27, 2016)

Pet. Exh. 4 Declaration of Michael Jared Marsh, FTC v. Brace, et al., No. 1:15-cv-875 (W.D.N.Y. Oct. 5, 2015)

Pet. Exh. 5 Civil Investigative Demand directed to AFR Financial LLC (FTC File No. 1523038) (Mar. 23, 2016)

Pet. Exh. 6 FTC Resolution No. 992-3140 (Apr. 15, 1999)

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Pet. Exh. 7 Letter from Donald E. Pinaud, Jr., Kattman & Pinaud, P.A., to FTC attorney Michael Tankersley (Apr. 5, 2016)

Pet. Exh. 8 Letter from Tankersley to Pinaud (Apr. 12, 2016)

Pet. Exh. 9 Email exchange between Tankersley and Pinaud (Apr. 13, 2016)

Pet. Exh. 10 Email from Tankersley to Pinaud (May 27, 2016)

Pet. Exh. 11 Email from Tankersley to Pinaud (Jun. 7, 2016)

Pet. Exh. 12 Email exchange between Tankersley and Pinaud (July 15, 2016)

The Parties

1. The Commission is an administrative agency of the United States,

organized and existing pursuant to the FTC Act, 15 U.S.C. § 41 et seq. It is empowered

by Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), to prohibit, inter alia, “unfair or

deceptive acts or practices in or affecting commerce.” The Commission is also

authorized to enforce the FDCPA, 15 U.S.C. §§ 1692-1692p, violations of which “shall

be deemed an unfair or deceptive act or practice” under Section 5, 15 U.S.C. § 1692l(a).

2. Respondent, AFR Financial, is a Florida limited liability company with its

principal place of business at 8028 Lone Star Road in Jacksonville, Florida. Pet. Exh. 2.

AFR Financial is licensed as a “Consumer Collection Agency” under Florida law, license

number CCA9903708. Pet. Exh. 3. Under Florida law, “Consumer Collection Agency”

refers to “any debt collector or business entity engaged in the business of soliciting

consumer debts for collection or of collecting consumer debts,” unless otherwise

exempted. Fla. Stat. § 559.55(3).

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Jurisdiction and Venue

3. Section 3 of the FTC Act, 15 U.S.C. § 43, authorizes the Commission to

prosecute any inquiry necessary to its duties in any part of the United States. Section 6 of

the FTC Act, 15 U.S.C. § 46, empowers the Commission to gather and compile

information concerning, and to investigate from time to time, the business and practices

of persons, partnerships, or corporations engaged in or whose business affects commerce,

with certain exceptions not relevant here. Section 20 of the FTC Act, 15 U.S.C. § 57b-1,

empowers the Commission to issue CIDs to require any person, inter alia, to produce

documentary material, to file written reports or answers, and to give oral testimony

relating to any Commission law enforcement investigation.

4. Section 20 of the FTC Act provides this Court with jurisdiction over AFR

Financial and authorizes it to enforce the CID. Section 20(e) states as follows:

Whenever any person fails to comply with any civil investigative demand duly served upon him under this section, or whenever satisfactory copying or reproduction of material requested pursuant to the demand cannot be accomplished and such person refuses to surrender such material, the Commission, through such officers or attorneys as it may designate, may file, in the district court of the United States for any judicial district in which such person resides, is found, or transacts business, and serve upon such person, a petition for an order of such court for the enforcement of this section.

15 U.S.C. § 57b-1(e). Section 20(h) authorizes the Court “to hear and determine the

matter so presented, and to enter such order or orders as may be required to carry into

effect the provisions of this section.” 15 U.S.C. § 57b-1(h). This Court also has

jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345.

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5. AFR Financial resides in and engages in commerce in this district, as the

term “commerce” is defined under Section 4 of the FTC Act. 15 U.S.C. § 44. Because

the Middle District of Florida is a jurisdiction within which AFR Financial “resides, is

found, or transacts business,” venue is proper under Section 20 of the FTC Act. 15

U.S.C. § 57b-1(e).

The Commission’s Investigation

6. This investigation concerns AFR Financial’s acquisition and use of debt

portfolios, which are “pools of . . . payment obligations that the original lenders have

been unable to collect.” Dunham v. Portfolio Recovery Assocs., LLC, 663 F.3d 997, 999

(8th Cir. 2011).

7. The FTC has received complaints from consumers and others that debt

collectors are attempting to collect on short-term “payday” loans made under the name

“500FastCash.” Pet. Exh. 1 ¶ 4. These loans were serviced by AMG Services, Inc.

(AMG). AMG’s corporate representative has attested that neither AMG nor any of its

clients have sold any customer account information or placed or sold any charged-off

accounts to third parties. Pet. Exh. 1 ¶ 4; see also Pet. Exh. 4, Decl. of Michael Jared

Marsh, FTC v. Brace, et al., No. 1:15-cv-875 (W.D.N.Y. Oct. 5, 2015). Thus, according

to AMG’s representative, any attempts by any third party to collect on 500FastCash or

other AMG-serviced loans are unauthorized. Id.

8. The FTC has learned that collectors claiming to work for Respondent,

AFR Financial, have contacted consumers and demanded repayment of 500FastCash

loans. Pet. Exh. 1 ¶ 5.

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9. Last year, the Commission initiated an enforcement action against certain

other debt collectors, alleging that their demand that consumers repay the 500FastCash

loans violated Section 5 of the FTC Act and various provisions of the FDCPA, which,

inter alia, prohibits debt collectors from making false or deceptive representations, 15

U.S.C. § 1692e. See Complaint, FTC v. Brace, et al., No. 1:15-cv-875 (W.D.N.Y. Oct. 5,

2015), available at

https://www.ftc.gov/system/files/documents/cases/151104delawaresolcmpt.pdf

Authority for and Issuance of the CID

10. On March 23, 2016, the Commission issued a CID to AFR Financial under

the authority of FTC Resolution No. 992-3140, which authorizes the use of any and all

compulsory process

to determine whether in the process of collecting debts, unnamed persons, partnerships or corporations may be engaging in, or may have engaged in, acts or practices in violation of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., and/or Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, as amended. Such investigation shall, in addition, determine whether Commission action to obtain redress of injury to consumers or others would be in the public interest.

Pet. Exh. 1 ¶ 6; Pet. Exh. 5 (CID); Pet. Exh. 6 (Resolution).

11. The CID seeks information and documents from AFR Financial relating to

debt portfolios containing 500FastCash and other AMG-serviced loans including, among

other things, the source and sale of any such portfolios, and its efforts to collect on loans

purportedly issued by clients of AMG. The CID also requests information and

documents regarding AFR Financial’s corporate structure, management, and debt

6

https://www.ftc.gov/system/files/documents/cases/151104delawaresolcmpt.pdf


collection practices, including its practices for resolving consumer disputes and verifying

the validity of purchased debt acquired from others. Pet. Exh. 1 ¶ 7; Pet. Exh. 5.

12. The CID required AFR Financial to respond to 14 interrogatories and 4

document requests by April 8, 2016. Pet. Exh. 5. The CID informed AFR Financial that

it must raise any “factual or legal objections” to the CID by filing a petition to limit or

quash the CID with the Commission within 20 days after service (see 16 C.F.R. §

2.10(a)).

AFR Financial’s Failure to Respond to the CID

13. On April 1, 2016, FTC attorney Michael Tankersley received a phone call

from Kimona Fuartado, a manager of AFR Financial, who explained that she had

received the CID. Pet. Exh. 1 ¶ 9. Ms. Fuartado stated that she was familiar with the

500FastCash loans and that she believed that AFR Financial had made some calls to

collect on those loans. Id. Ms. Fuartado also stated that the company possessed

responsive information. Id. She explained, however, that AFR Financial was unable to

comply with CID’s April 8 production deadline because she was still seeking legal

counsel to respond to the requests. Id.

14. On April 11, 2016, FTC staff received a letter (dated April 5) via U.S.

Postal Service from Donald E. Pinaud, Jr., Esq. of Kattman & Pinaud, P.A., stating that

he had been retained to represent AFR Financial and Ms. Fuartado. Pet. Exh. 1 ¶ 10; Pet.

Exh. 7. Mr. Pinaud’s letter asked for written clarification of “exactly what or who you

are investigating, and why exactly you want information from my clients.” Id.

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15. On April 12, 2016, Mr. Tankersley sent a letter in response to Mr.

Pinaud’s letter via email and facsimile. Pet. Exh. 1 ¶ 11; Pet. Exh. 8. Mr. Tankersley

explained that the CID seeks information regarding AFR Financial’s collection of

500FastCash debt and that Ms. Fuartado had already informed him that the company

possesses responsive material. Id. Mr. Tankersley also noted that the CID’s production

deadline had already passed and he requested that AFR Financial respond to the

interrogatories and produce the responsive records as soon as possible. Id.

16. On April 13, 2016, Mr. Pinaud sent an email to Mr. Tankersley claiming

that he “need[ed] to know” whether the FTC is “looking at or suggesting or investigating

any wrongdoing by my clients . . . before we cooperate.” Later that day, Mr. Tankersley

responded to Mr. Pinaud’s email by explaining that while the CID “does not accuse,

suggest or presume any wrongdoing by AFR Financial,” the CID seeks information to

help FTC staff “evaluate whether any wrongdoing has occurred, and, if so, who may be

responsible.” See Pet. Exh. 1 ¶ 12; Pet. Exh. 9.

17. During early May 2016, Mr. Tankersley left several voicemail messages

for Mr. Pinaud requesting that he return Mr. Tankersley’s call regarding AFR Financial’s

response to the CID. Pet. Exh. 1 ¶ 13. Mr. Pinaud did not respond until May 16, 2016,

when he called Mr. Tankersley and again asked whether his clients were targets of the

FTC investigation. Id. Mr. Tankersley explained that the Commission had not made any

decisions regarding wrongdoing or liability, and that it had issued the CID to gather

information. Id. Mr. Pinaud said he would speak to his client and prepare a response to

the CID that week. Id.

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18. On May 25, 2016, Mr. Tankersley left another voicemail message for Mr.

Pinaud regarding AFR Financial’s response to the CID. Pet. Exh. 1 ¶ 14. Mr. Pinaud did

not respond to that message. Id.

19. On May 27, 2016, Mr. Tankersley sent an email to Mr. Pinaud requesting

that Mr. Pinaud call him about AFR Financial’s “long overdue” response to the CID. See

Pet. Exh. 1 ¶ 15; Pet. Exh. 10. Mr. Tankersley urged AFR Financial to provide at least

“an interim response to show progress on complying with the Civil Investigative

Demand.” Id. Mr. Pinaud did not respond to the email. Pet. Exh. 1 ¶ 15.

20. On June 2, 2016, Mr. Tankersley called Mr. Pinaud’s office and received

an automated message stating that the voice mailbox was full. Pet. Exh. 1 ¶ 16. On June

6, 2016, Mr. Tankersley left another voicemail message for Mr. Pinaud. Id. Mr. Pinaud

did not respond to the message. Id.

21. On June 7, 2016, Mr. Tankersley sent an email to Mr. Pinaud again

requesting AFR Financial’s response to the CID. Pet. Exh. 1 ¶ 17; Pet. Exh. 11. Mr.

Tankersley requested that Mr. Pinaud return his call immediately and cautioned that

should AFR Financial not provide a proper response to the CID, the “next step” would be

to bring an enforcement action in federal district court. Id. Mr. Pinaud did not respond to

the email. Pet. Exh. 1 ¶ 17.

22. On July 15, 2016, Mr. Tankersley sent an email notifying Mr. Pinaud that

the matter had now been referred to the FTC’s Office of the General Counsel to initiate

an enforcement action in federal district court. Pet. Exh. 1 ¶ 18; Pet. Exh. 12. That same

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day, Mr. Pinaud responded by stating that he had “an appointment with [his client] the

week of August 1,” which was “the earliest our calendars could accommodate.” Id.

23. Although AFR Financial’s response to the CID was due on April 8, 2016,

it has not produced any documents or answered any of the interrogatories. Pet. Exh. 1 ¶

19.

24. AFR Financial has not filed a petition to limit or quash the CID. Id.; see

15 U.S.C. § 57b-1(f); 16 C.F.R. 2.10(a).

25. AFR Financial’s failure to comply with the CID greatly impedes the

Commission’s ongoing investigation, and prevents the Commission from completing its

investigation in a timely manner. Pet. Exh. 1 ¶ 20.

Memorandum of Law

The court’s role in a proceeding to enforce an administrative subpoena or CID is

“sharply limited.” United States v. Fla. Azalea Specialists, 19 F.3d 620, 623 (11th Cir.

1994) (quoting EEOC v. Kloster Cruise Ltd., 939 F.2d 920, 922 (11th Cir. 1991)). While

“the court’s function is neither minor nor ministerial, the scope of issues which may be

litigated in [a compulsory process] enforcement proceeding must be narrow, because of

the important governmental interest in the expeditious investigation of possible unlawful

activity.” FTC v. Texaco, Inc., 555 F.2d 862, 872 (D.C. Cir. 1977) (en banc) (internal

citation omitted). Thus, a district court must enforce agency process so long as (1) the

inquiry is within the authority of the agency; (2) the demand is not too indefinite; and (3)

the information sought is reasonably relevant. EEOC v. Tire Kingdom, Inc., 80 F.3d 449,

450 (11th Cir. 1996) (per curiam) (citing United States v. Morton Salt Co., 338 U.S. 632,

10


652 (1950)); Fla. Azalea Specialists, 19 F.3d at 623; see also United States v. Lockheed

Martin Corp., 995 F. Supp. 1460, 1462 (M.D. Fla. 1998).

The Commission has satisfied the requirements for judicial enforcement of the

CID, as shown by the accompanying declaration of Michael Tankersley, the FTC’s lead

attorney in this investigation. See Pet. Exh. 1. The CID was duly issued in an

investigation the Commission is authorized to conduct, and it seeks documents and

information reasonably relevant to the investigation. Additionally, Section 20(f) of the

FTC Act, 15 U.S.C. § 57b-1(f), precludes AFR Financial from raising objections to

judicial enforcement, since it failed to exhaust its administrative remedies by presenting

any such objections to the Commission in a petition to limit or quash the CID. See supra

¶¶ 12, 24; 16 C.F.R. § 2.10(a). The Commission, accordingly, respectfully requests that

this Court direct AFR Financial to appear and show cause why it should not fully comply,

and thereafter enter its own order enforcing the CID. See, e.g., Fla. Azalea Specialists,

19 F.3d at 623-24.

I. The Commission Is Authorized To Conduct The Investigation.

The FTC has ample authority to issue CIDs in its investigations (see supra ¶ 3),

and it is unequivocally authorized to conduct the investigation at issue. The CID requests

records and information in connection with debt portfolios purporting to list consumer

loans issued under the name “500FastCash” or serviced by AMG Services, Inc. See

supra ¶¶ 6-9. False representations regarding consumer debts may violate Section 5 of

the FTC Act, 15 U.S.C. § 45(a),1 which prohibits unfair or deceptive acts or practices,

1 Section 5 provides, in relevant part:

11


and several provisions of the FDCPA, e.g., 15 U.S.C. §§ 1692e, 1692g, which bars false,

deceptive, or misleading debt collection practices and requires collectors to provide

consumers with dispute resolution rights and verify the validity of debts acquired from

third parties.2 Accordingly, the investigation to which the CID pertains falls well within

the FTC’s statutory authority.

II. The CID Was Duly Issued.

The Commission’s March 23, 2016 CID fully comports with the applicable

procedural requirements of the authorizing statute and its implementing FTC Rules of

Practice. See Pet. Exh. 5; 15 U.S.C. § 57b-1; 16 C.F.R. § 2.7.

(a)(1) [U]nfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.

(2) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations . . . from using . . . unfair or deceptive acts or practices in or affecting commerce.

15 U.S.C. § 45.

2 Section 807 of the FDCPA provides, in relevant part, “A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt,” including by falsely representing “the character, amount, or legal status of any debt” or “that accounts have been turned over to innocent purchasers for value.” 15 U.S.C. § 1692e.

Section 809 of the FDCPA provides, inter alia, that if a consumer notifies a debt collector that he or she is disputing the alleged debt, “the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.” 15 U.S.C. § 1692g(b).

12


First, the CID satisfies the FTC Act’s requirements of “definiteness and certainty”

because it specifies the kinds of documents and information to be produced. 15 U.S.C. §

57b-1(c)(3)(A), (c)(5)(A); see also Pet. Exh. 5 (CID). In this instance, the CID

prescribed a return date of more than two weeks after issuance, giving AFR Financial a

“reasonable period of time” to assemble the specified documents and prepare its

responses to interrogatories—and AFR Financial did not ask for additional time.3 15

U.S.C. § 57b-1(c)(3)(B), (c)(5)(B). The CID also “identif[ied] the custodian[s]” (Michael

B. Goldstein and Michael Tankersley) to whom the documents were to be produced and

to whom the responses shall be directed. See 15 U.S.C. § 57b-1(c)(3)(C), (c)(5)(C).

Moreover, the CID was validly “signed by a Commissioner,” in this case, Commissioner

Maureen K. Ohlhausen, “acting pursuant to a Commission resolution.” 15 U.S.C. § 57b-

1(i).

Finally, the CID included a copy of the Commission’s compulsory process

resolution (see supra ¶ 10), thus giving AFR Financial adequate notice of “the nature of

the conduct constituting the alleged violation which is under investigation and the

provision of law applicable to such violation.” 15 U.S.C. § 57b-1(c)(2); 16 C.F.R. § 2.6;

Pet. Exh. 5 & 6; see FTC v. O’Connell Associates, Inc., 828 F. Supp. 165, 170-71

(E.D.N.Y. 1993) (notice requirement is met by “cit[ing] a resolution giving the FTC

authority to use compulsory process”).

3 The FTC’s Rules of Practice authorize certain FTC officials to extend a CID’s production deadline if the recipient demonstrates satisfactory progress towards compliance. 16 C.F.R. § 2.7(l).

13


III. The Evidence Sought is Relevant and Material to the Investigation.

The standard for judging relevancy in an investigation is a broad one. In an

investigation, the Commission is not limited to seeking information that is necessary to

prove specific charges. Rather, the objective of an investigation is to learn whether there

is reason to believe that the law has been, or is being, violated and, if so, whether the

issuance of a complaint would be in the public interest. See Texaco, 555 F.2d at 872; see

also Fla. Azalea Specialists, 19 F.3d at 622-23 (an agency “can investigate merely on

suspicion that the law is being violated, or even just because it wants assurance that it is

not”) (quoting Morton Salt, 338 U.S. at 642-43). The required documents and

information, therefore, need only be relevant to the investigation—the boundary of which

may be defined by the agency quite generally. See Carter, 636 F.2d at 787-88; Texaco,

555 F.2d at 874 & n.26; FTC v. Invention Submission Corp., 965 F.2d 1086, 1090 (D.C.

Cir. 1992).

The CID seeks information central to the current investigation. It requires AFR

Financial to produce documents and respond to interrogatories concerning its (1)

corporate structure and management, (2) acquisition of debt portfolios containing

500FastCash and other AMG-serviced loans, (3) efforts to collect on those loans, (4)

consumer dispute resolution practices, and (5) efforts to verify the validity of debt it

purchases from others. Pet. Exh. 5; Pet. Exh. 1 ¶ 7. This information is directly relevant

to the subjects identified in the Commission’s resolution, namely whether “in the process

of collecting debts, unnamed persons, partnerships or corporations may be engaging in,

or may have engaged in, acts or practices in violation of the Fair Debt Collection

14


Practices Act, 15 U.S.C. § 1692 et seq., and/or Section 5 of the Federal Trade

Commission Act, 15 U.S.C. § 45.” Pet. Exh. 6. The CID also seeks documents

concerning AFR Financial’s revenues (Pet. Exh. 5), which the resolution plainly

authorizes by directing FTC staff to “determine whether Commission action to obtain

redress of injury to consumers or others would be in the public interest” (Pet. Exh. 6).

Thus, the CID seeks only information that is “reasonably relevant” to the investigation.

Fla. Azalea Specialists, 19 F.3d at 624.

IV. AFR Financial’s Failure To Exhaust Its Administrative Remedies Precludes It From Challenging Judicial Enforcement.

As Magistrate Judge Thomas G. Wilson of this district recently concluded, a CID

recipient’s “failure to exhaust administrative remedies” by filing a petition to limit or

quash with the Commission “precludes [it] from raising objections to the judicial

enforcement of the CID.” See FTC v. Tracers Info. Specialists, Inc., No. 8:16-MC-

18TGW, 2016 WL 3896840, at *3 (M.D. Fla. June 10, 2016). AFR Financial did not file

a petition to limit or quash (supra ¶ 24) and thus may not contest enforcement here.

Section 20(f) of the FTC Act provides that a CID recipient may file with the

Commission a petition to “modify[] or set[] aside the demand” within 20 days, and “shall

comply with any portions of the demand not sought to be modified or set aside.” 15

U.S.C. § 57b-1(f) (emphasis added). The Commission’s Rules of Practice implement this

provision by requiring a CID recipient to file with the Commission a “petition to limit or

quash any compulsory process,” which sets forth “all assertions of protected status or

other factual and legal objections to the Commission compulsory process, including all

appropriate arguments, affidavits, and other supporting documentation.” 16 C.F.R. §

15


2.10(a)(1). The petition is due 20 days after service of the CID, unless a designated FTC

staff member extends the deadline. 16 C.F.R. § 2.10(a)(1), (5). The full Commission

then considers the petition and issues a written ruling. 16 C.F.R. § 2.10(c).

Because AFR Financial did not file an administrative petition to limit or quash, it

may not contest enforcement of the CID “for any reason short of objections based on

constitutional grounds.” EEOC v. Cuzzens of Ga., Inc., 608 F.2d 1062, 1064 (5th Cir.

1979) (per curiam).4 See also Morton Salt, 338 U.S. at 653 (recipient of FTC process

may not challenge the demands as “arbitrarily excessive” without first making

“reasonable efforts before the Commission itself to obtain reasonable conditions”);

O’Connell Associates, 828 F. Supp. at 168 (exhaustion requirement applies even if a

process recipient “waits for the FTC to bring an action [rather] than if he himself

institutes it. In either case, there was an administrative mechanism for him to utilize and

he failed to do so.”). Thus, the Court should decline to consider any belated objections to

the CID that AFR Financial may attempt to raise in this proceeding.

Prayer for Relief

WHEREFORE, the Commission invokes the aid of this Court and prays:

a. For the immediate issuance of an order, substantially in the form attached,

directing AFR Financial to appear and show cause why it should not comply in full with

the CID;

4 Cases decided by the former Fifth Circuit prior to the close of business on September 30, 1981, are binding precedent. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981).

16

b. For a prompt determination of this matter and an order requiting AFR

Financial to fully comply with the CID within ten (10) days of such order, or at such later

date as may be established by the Commission;

c. For such other relief as this Court deems just and proper.

Respectfully submitted,

DAVID C. SHONKA Acting General Counsel

LESLIE RICE MELMAN Assistant General Counsel for Litigation

BRADLEY GROSSMAN, Litigation Counsel Of Counsel: Office of the General Counsel

Federal Trade Commission MICHAEL E. TANKERSLEY 600 Pennsylvania Ave., N.W. Division of Financial Practices Washington, D.C. 20580

(202) 326-2994 (202) 326-2477 (fax)

Dated: July 29, 2016 [email protected]

17


Case 3:16-mc-00045-MMH-JRK Document 1-1 Filed 07/29/16 Page 1 of 8 PageID 18

PETITION EXHIBIT 1

Declaration of Michael E. Tankersley





) Petitioner, )

) Misc. No. ________________ v. )


) Respondent. )

) )

DECLARATION OF MICHAEL E. TANKERSLEY

Pursuant to 28 U.S.C. § 1746, I declare as follows:

1. I am an attorney employed by the U.S. Federal Trade Commission (FTC or

Commission) in Washington, D.C., in the Division of Financial Practices. I am

assigned to an FTC investigation concerning debt portfolios purportedly issued

under the name “500FastCash” or serviced by AMG Services, Inc., and the

collection of such loans.

2. I am authorized to execute a declaration verifying the facts that are set forth in the

Petition of the Federal Trade Commission for an Order Enforcing Administrative

Investigative Process. I have read the petition and exhibits thereto (hereinafter

referred to as Pet. Exh.), and verify that Pet. Exh. 1 through Pet. Exh. 12 are true

and correct copies of the original documents. The facts set forth herein are based

1


on my personal knowledge or information made known to me in the course of my

official duties.

3. Respondent, AFR Financial LLC (AFR Financial), is a Florida limited liability

company with its principal place of business at 8028 Lone Star Road in

Jacksonville, Florida. Pet. Exh. 2 (Records of Florida Secretary of State, Division

of Corporations). AFR Financial is licensed as a “Consumer Collection Agency”

under Florida law, license number CCA9903708. Pet. Exh. 3 (Records of Florida

Office of Financial Regulation).

4. The FTC has received complaints from consumers and other sources about debt

collectors who purport to be collecting on short-term consumer loans, often

known as “payday loans,” made under the name “500FastCash.” 500FastCash is

a trade name of Red Cedar Services, Inc. (Red Cedar), an online lender that made

loans serviced by AMG Services, Inc. (AMG). AMG’s legal advisor and former

general counsel, M. Jared Marsh, has attested that neither AMG, nor any of its

clients, including Red Cedar, have sold any of their customer account information

or placed or sold any of their charged-off accounts to third parties. See Pet. Exh.

4, Decl. of Michael Jared Marsh filed in FTC v. Brace, et al., W.D.N.Y. Case No.

1:15-cv-875 (filed Oct. 5, 2015). According to Mr. Marsh, any third-party

collection calls purporting to collect on 500FastCash or other AMG-serviced

loans are unauthorized. Id.

2


5. Information obtained by the FTC indicates that consumers have received calls

from collectors identifying themselves as representatives of Respondent AFR

Financial, demanding repayment of 500FastCash loans.

6. The Commission issued a civil investigative demand (CID) to AFR Financial on

March 23, 2016. Pet. Exh. 5. The CID is issued under the authority of FTC

Resolution No. 992-3140 (Pet. Exh. 6), which authorizes the use of compulsory

process

to determine whether in the process of collecting debts, unnamed persons, partnerships or corporations may be engaging in, or may have engaged in, acts or practices in violation of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., and/or Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, as amended. Such investigation shall, in addition, determine whether Commission action to obtain redress of injury to consumers or others would be in the public interest.

7. The CID seeks information and documents from AFR Financial relating to

purported 500FastCash and other AMG debt portfolios including, among other

things, the source and sale of any such portfolios, and efforts to collect loans

purportedly issued by clients of AMG. The CID also requests information and

documents regarding AFR Financial’s corporate structure, management, and debt

collection practices, including its practices for resolving consumer disputes and

verifying the validity of purchased debt acquired from others.

8. The CID directed AFR Financial to respond to document requests and

interrogatories on or before April 8, 2016.

9. On April 1, 2016, I received a telephone call from a woman who identified herself

as Kimona Fuartado, a manager of AFR Financial, explaining that she had

3


received the CID. She stated that she was familiar with 500FastCash debt and

that she believed that AFR Financial had made some calls to collect debts using

portfolios listing 500FastCash loans. She also stated that the company had

documents concerning the 500FastCash debts. She explained, however, that AFR

Financial would not respond to the CID by the April 8 deadline because she was

seeking legal counsel to represent the company in its response to the CID.

10. On April 11, 2016, I received, by regular mail, a letter dated April 5 from attorney

Donald E. Pinaud, Jr. of Kattman & Pinaud P.A., stating that he represented AFR

Financial and Kimona Fuartado. See Pet. Exh. 7. Mr. Pinaud’s letter sought

clarification of “exactly what or who you are investigating, and why exactly you

want information from my clients.”

11. On April 12, 2016, I sent a letter responding to Mr. Pinaud by email and

facsimile. See Pet. Exh. 8. My letter explained that the CID seeks information

regarding AFR Financial’s collection of 500FastCash debt and that Ms. Fuartado

had already informed me that the company possesses responsive material. I

explained that the CID’s production deadline had already passed and requested

that AFR Financial respond to the interrogatories and produce the responsive

records as soon as possible.

12. On April 13, 2016, I received an email from Mr. Pinaud in response, stating that

he “need[ed] to know” whether the FTC is “looking at or suggesting or

investigating any wrongdoing by my clients . . . before we cooperate” with the

CID. Later that day, I responded to Mr. Pinaud’s email by explaining that while

4


the CID “does not accuse, suggest or presume any wrongdoing by AFR

Financial,” the CID seeks information to help FTC staff “evaluate whether any

wrongdoing has occurred, and, if so, who may be responsible.” See Pet. Exh. 9.

13. In early May 2016, I called the offices of Kattman & Pinaud on several occasions

and each time was directed to an automated voice mail system to leave a message.

I left messages requesting that Mr. Pinaud call me regarding AFR Financial’s

response to the CID. I did not receive a response until Monday, May 16, 2016,

when Mr. Pinaud called me and inquired whether the CID indicated that his

clients were targets of the FTC investigation. I reiterated that the Commission

had not made any decisions regarding wrongdoing or liability, and that it had

issued the CID to gather information. Mr. Pinaud said he would speak to his

client and prepare a response that week.

14. On May 25, 2016, I called the offices of Kattman & Pinaud and was directed to an

automated voice mail system to leave a message. I left a message requesting that

Mr. Pinaud call me regarding AFR Financial’s response to the CID. Mr. Pinaud

did not respond to my message.

15. On May 27, 2016, I sent an email to Mr. Pinaud requesting that he call me

regarding AFR Financial’s “long overdue” response to the CID, and stating,

“Even if AFR Financial is still locating materials, we need an interim response to

show progress on complying with the Civil Investigative Demand.” See Pet. Exh.

10. Mr. Pinaud did not respond to my email.

5


16. On June 2, 2016, I called the offices of Kattman & Pinaud and was directed to an

automated voice mail system that stated that it could not store a message because

the mailbox was full. On June 6, 2016, I called the offices of Kattman & Pinaud

again and was directed to an automated voice mail system. I left a message

requesting that Mr. Pinaud call me regarding AFR Financial’s response to the

CID. Mr. Pinaud did not respond to my message.

17. On June 7, 2016, I sent an email to Mr. Pinaud again requesting AFR Financial’s

response to the CID. I requested that Mr. Pinaud return my call immediately and

explained that should AFR Financial not provide a proper response to the CID,

the “next step” would involve bringing an enforcement action in federal district

court. See Pet. Exh. 11. Mr. Pinaud did not respond to this email.

18. On July 15, 2016, I sent an email informing Mr. Pinaud that the matter had now

been referred to the FTC’s Office of the General Counsel to initiate an

enforcement action in federal district court. That same day, Mr. Pinaud

responded by stating that he had “an appointment with [his client] the week of

August 1,” which was “the earliest our calendars could accommodate.” Pet. Exh.

12.

6

19. To date, AFR Financial has not provided any response to the CID issued March

23, 2016. Nor has AFR Financial filed a petition to limit or quash the CID with

the Commission. See 15 U.S.C. § 57b-l(f); 16 C.F.R. § 2.l0(a).

20. AFR's failure to respond to the CID has burdened, delayed, and impeded the

Commission's investigation.

I declare under penalty of pe1jury that the foregoing is true and correct.

Executed on July 28, 2016 Michae~ E. Tan ersley, Staff At~,ney Division of Financial Practicef/" Bureau of Consumer Protection Federal Trade Commission

7



PETITION EXHIBIT 2

Records of Florida Secretary of State, Division of Corporations (accessed July 27, 2016)

Detail by Entity Name

FLORIDA DEPARTMENT OF STATE

D 1v1s10'.'\ oF CoRPORAT1o~s


Florida Limited Liability Company

AFR FINANCIAL LLC

Filing Information

Document Number L15000109648 FEI/EIN Number NONE Date Filed 06/24/2015 Effective Date 06/24/2015

State FL Status ACTIVE Last Event LC AMENDMENT Event Date Filed 10/23/2015

Event Effective Date NONE

Principal Address

8028 LONE STAR RD JACKSONVILLE, FL 32211

Mailing Address

8028 LONE STAR RD JACKSONVILLE, FL 32211

Registered Agent Name & Address

FUARTADO, KIMONA 8028 LONE STAR RD JACKSONVILLE, FL 32211

Authorized Person(s) Detail

Name & Address

Title MGRM

AUSTIN, CARLA 905 RISING MIST COURT JACKSONVILLE, FL 32221

Title MGRM

FUARTADO, KIMONA 8028 LONE ST AR ROAD JACKSONVILLE, FL 32211

Annual Reports

No Annual Reports Filed

Document Images

Page 1 of 2

http ://search. sunbiz. org/Inqui.iy /CorporationSearch/SearchResultDetail ?inquiiytype=Entity... 7 /27/2016



10/23/2015 -- LC Amendment View image in PDF format

06/24/2015 -- Florida Limited Liability ._I __ Vi_1_ew_ im_a"""'g_e_in_P_D_F_f_or_m_a_t _ _.

Copyright © and Privacy Policies

State of Florida, Department of state

Page 2 of2

http ://search. sunbiz. org/Inqui.iy/CorporationSearch/SearchResultDetail ?inquiiytype=Entity... 7 /27/2016



PETITION EXHIBIT 3

Records of Florida Office of Financial Regulation (accessed July 27, 2016)

Smart, Efficient and Effective Regulation

Florida Office of Financial Regulation Page 1 of 1 Case 3:16-mc-00045-MMH-JRK Document 1-3 Filed 07/29/16 Page 2 of 2 PageID 30

Home About OFR Apply for a License Verify a License File a Complaint News Research Resources

License Search Results Detail

License Name: AFR FINANCIAL LLC DBA Name: TRUST FINANCIAL

License Type: Consumer Collection Agency Status: Approved Status Effective Date: 12/31/2015 Original Date of License: 11/3/2015 License Number: CCA9903708 License Expiration Date: 12/31/2016

License Main Address: Street: 8028 LONE STAR ROAD City: JACKSONVILLE State: FL Zip Code: 32211 License Mailing Address: Street: 8018 FOXDALE DRIVE City: JACKSONVILLE State: FL Zip Code: 32210

Phone Number:

Search for Final Orders

New Search Return to Search Results

Accessibility Contact Us Site Map (850) 487-9687

https://real.flofr.com/consumerservices/searchlicensingrecords/SearchDetail.aspx?licNum... 7/27/2016

https://real.flofr.com/consumerservices/searchlicensingrecords/SearchDetail.aspx?licNum


PETITION EXHIBIT 4

Declaration of Michael Jared Marsh filed in FTC v. Brace, et al.,

W.D.N.Y. Case No. 1:15-cv-875 (filed Oct. 5, 2015)

DECLARATION OF MICHAEL JARED MARSH PURSUANT TO 28 U.S.C. §1746

I, Michael Jared Marsh, hereby state that I have personal knowledge of the facts as set

forth below. If called as a witness, I could and would testify as follows:

1. I am a citizen of the United States and am over eighteen (18) years of age. I live in Prairie

Village, Kansas.

2. I am a practicing attorney, admitted in the States of Missouri and Kansas. From January 20,

2009 until February 28, 2015, I held the position of General Counsel at AMG Services, Inc.

("AMG"). Beginning on March 1, 2015 to the present I have provided legal counsel to

AMG as an independent legal advisor.

3. AMG provided loan servicing for a number of entities, wholly owned by federally

recognized Indian Tribes and engaged in extending online, short term, small dollar

consumer loans. As General Counsel, I assisted management in monitoring and resolving

customer complaints and human resources issues, as well as coordinating with outside legal

counsel regarding regulatory compliance and pending litigation.

4. In early August 2014, a floor manager from one of the AMG customer service

departments came to my office to bring to my attention that an increasing number of

phone calls the customer service representatives were receiving were from non-customers

and customers complaining about abusive collection calls from debt collectors claiming

to be collecting on behalf of the tribally owned lenders that were serviced by AMG.

AMG did not have any records of any collection attempts to these non-customers and

customers.

Case 1:15-cv-00875-RJA-JJM Document 2-16 Filed 10/05/15 Page 2 of 28 Case 3:16-mc-00045-MMH-JRK Document 1-4 Filed 07/29/16 Page 2 of 7 PageID 32

PX 16 000094

5. The floor manager indicated that these calls began coming into the call center beginning

in late July 2014. The floor manager told me that most of these callers were not

customers of any of the tribally own.ed lenders serviced by AMG.

6. AMG does not have, and never had, the authority to sell or place any consumer or

account information .it obtains during the provision of services to its tribal lender clients.

Since 2008, to the best of my knowledge, AMG's tribal lender clients have never sold

any of their customer or account information or placed or sold any of their charged-off

accounts to any third-party.

7. Once AMG management was alerted to this pattern of consumer calls, a system to collect

and record the information was created. A form containing the name of the alleged lender

and account number, company and agent calling, the phone number on the consumer's

caller identification, any callback number, company address, and then notes about any

other details given by the consumer was utilized by the customer service representative to

collect this data. My assistant then transfe1Ted this data from the forms to a spreadsheet.

8. In late February 2015, I transferred a copy of this spreadsheet to the FTC via an

encrypted file transfer protocol ("FTP") website. At that time there were 818 entries on

the spreadsheet. Of these 818, 185 entries were about Delaware Solutions, Clear Credit

Solutions, or some close permutation of those names.

9. In the vast majority of the Delaware Solutions and Clear Credit Solutions entries (166),

the lender was identified as 500FastCash. 500FastCash is a trade name of Red Cedar

Services, Inc. ("RCS"). Delaware Solutions and Clear Credit Solutions also claimed to be

collecting on behalf of AdvantageCashServices, Ameriloan, OneClickCash,

StarCashProcessing, UnitedCashLoans, and USFastCash.


PX 16 000095

10. OneClickCash is a trade name of SFS, Inc. ("SFS"). Ameriloan, AdvantageCashServices,

StarCashProcessing, UnitedCashLoans, and USFastCash are trade names of MNE

Services, Inc. ("MNE").

11. Red Cedar Services, Inc. is a wholly owned governmental instrumentality of the Modoc

Tribe of Oklahoma, a federally recognized Indian Tribe located on Indian lands in the

State of Oklahoma. SFS, Inc. is a wholly owned governmental instrumentality of the

Santee Sioux Nation, Nebraska, a federally recognized Indian Tribe located on Indian

lands in the State of Nebraska. MNE Services, Inc. is a wholly owned governmental

instrumentality of the Miami Tribe of Oklahoma, a federally recognized Indian Tribe

located on Indian lands in the State of Oklahoma. AMG provided loan servicing on

behalf of RCS, SFS and MNE.

12. Some consumers also reported that a company called Braclaire Management was

processing the consumer payments for Delaware Solutions.

13. On September 29, 2014, I sent a Cease and Desist letter on behalf of Red Cedar Services,

Inc. d/b/a S00FastCash to Clear Credit Solutions by facsimile and U.S. Mail. I sent the

letter to facsimile number 888-491-0608 and the address 300 Delaware Avenue, Suite

210, Wilmington, DE 19801. A true and correct copy of the Cease and Desist letter to

Clear Credit Solutions is appended hereto as Attachment A.

14. On October 9, 2014, I sent a Cease and Desist letter on behalf of Red Cedar Services, Inc.

d/b/a 500FastCast to Delaware Solutions. I sent the letter via U.S. Mail to the address 300

Delaware Avenue, Suite 210, Wilmington, DE 19801. A true and correct copy of the

Cease and Desist letter to Delaware Solutions is appended hereto as Attachme1tt B.


PX 16 000096

15. Both letters stated that, "500FastCash has not authorized any third-party to sell, broker,

market or collect any debt owed to 500FastCash." The letters instructed Clear Credit

Solutions and Delaware Solutions that any collection activity undertaken by them that

identified 500FastCash as a creditor was unauthorized and unlawful, and that all such

activity be immediately ceased.

16. The letters I sent were not returned to me. The letter that I faxed to Clear Credit Solutions

was transmitted.

17. In late September 2014 I was informed by a customer service manager that a man named

Mark Rush with Clear Credit Solutions called the customer service line for 500FastCash

attempting to validate the debt that Clear Credit Solutions claimed to have acquired from

a third-party debt broker. The manager informed Mr. Rush that 500FastCash did not sell

any of its debt to be collected by any third-party and asked Mr. Rush to provide the name

and contact information of the third-party debt broker that had sold the debt. Mr. Rush

stated he could not provide that information.

18. Shortly thereafter, I called one of the callback numbers for Clear Credit Solutions that

was provided to a customer service representative by a complaining consumer. I spoke to

an individual who identified himself as a manager. I do not recall if he gave me his nan1e.

I informed him that any attempt to collect in the name of 500FastCash or other trade

names used by AMG's tribal lender clients was tmlawfuJ.

19. The manager claimed that a rogue agent named Mark Rush had placed the accounts into

their system. The manager told me that Rush had been fired, and the accounts had been

deleted off their system.


PX 16 000097

20. After this telephone call, customer service representatives for the tribal lenders continued

to receive calls from consumers who stated that they were being contacted by Delaware

Solutions and Clear Credit Solutions about debts owed to AMG' s tribal lender clients.

The spreadsheet of complaints contains 106 entries in November and December 2014,

and January 2015 from Delaware Solutions and Clear Credit Solutions.

21. Because we continued to receive complaints, I tried calling management for Delaware

Solutions and Clear Credit Solutions to again order them to cease and desist. On October

17, 2014, I spoke with a manager identifying himself as Mike Mathis. Mr. Mathis told me

to speak to Clear Credit Solutions' attorney, but refused to give me the contact

information of that attorney and disconnected the call. When I called back that day, Mr.

Mathis again refused to give me any attorney contact information and stated that if I

continued to call he would consider it harassment and report me to law enforcement.

22. Non-customers and customers continued to complain of calls from Delaware Solutions

and/or Clear Credit Solutions, so I again called a call back number on November 25,

2104 and reached a man identifying himself as Matthew Weatherfield and who stated his

position was Team Lead. Mr. Weatherfield would not speak with me and transferred me

to a manager, who identi:fied himself as Mike Mathis. I informed Mr. Mathis that we had

spoken about a month earlier and that consumers had continued to call complaining about

Delaware Solutions and/or Clear Credit Solutions. Mr. Mathis put me on hold to get the

company' s attorney's information. He never came back on the line and the line then

disconnected. I tried to call back several times in the hours and days after this and either

reached a recorded message, dead air or collection agents who would refuse to transfer

me to a manager. The agents made various threats including reporting me to law


PX 16 000098

enforcement and reporting a complaint to my state bar, in an effort to get me to stop

calling. Finally, I was told that their corporate office would call me. I waited for a call

from the corporate office, but never received one.

23. The tribal lenders continued to receive calls from consumers about debt collection

attempts by Delaware Solutions and Clear Credit Solutions. The tribal lenders have

received calls as recently as July 22, 2015.

24. I have included some samples of correspondence that consumers have received and

forwarded to AMG, from Delaware Solutions and Clear Credit Solutions. True and

correct copies of emails and letters from Delaware Solutions and Clear Credit Solutions

are appended hereto as Attachment C.

I declare under penalty of perjury that the foregoing is true and correct. Executed this

~~yof J,.,/'1 ,2015.

Case 3:16-mc-00045-MMH-JRK Filed 07/29/16 Page 7 of 7 PageID 37 Case 1:15-cv-00875-RJA-JJM Document 1-4 Document 2-16 Filed 10/05/15 Page 7 of 28

PX 16 000099


PETITION EXHIBIT 5

Civil Investigative Demand directed to AFR Financial LLC

(FTC File No. 1523038) (Mar. 23, 2016)

() United States of America

Federal Trade Commission

CIVIL INVEST/GA TIVE DEMAND 1. TO

AFR Financial LLC c/o Kimona Fuartado, Registered Agent 8028 Lone Star Rd Jacksonville, FL 32211

This demand is issued pursuant to Sec1ion 20 of the Federal Trade Commission Act, 15 U.S.C. § 57b-1 , in the course of an investigation to determine whether there is, has been, or may be a violation of any laws administered by the Federal Trade Commission by conduct, activities or proposed action as described in Item 3.

2. ACTION REQUIRED

1 You are required to appear and testify.

LOCATION OF HEARING YOUR APPEARANCE Will BE BEFORE

Michael Tankersley Federal Trade Commission, (202) 326-2991

DATE AND TIME OF HEARING OR DEPOSITION

fx You are required to produce all documents described in the attached schedule that are in your possession, custody, or control, and to make them available at your address indkated above for inspection and copying or reproduction at the date and time specified below.

fx You are required to answer the interrogatories or provide the written report described on the attached schedule. Answer each interrogatory or report separately and fully in writing. Submit your answers or report to the Records Custodian named ln Item 4 on or before the date specified below. DATE AND TIME THE DOCUMENTS MUST BE AVAILABLE

APR - 8 2016 3. SUBJECT OF INVESTIGATION

See Attached Resolution

4. RECORDS CUSTODIAN/DEPUTY RECORDS CUSTODIAN 5. COMMISSION COUNSEL Miehael B. GcldSteln/Mic:Mel Tankersley Mir.hael Tankersley federal Traae Commission Federal Trade CommiSSIOn 600 Pennsytvarla Ave,, NW 600 Pennsyhran,a Ave., NW Ma11 Slop. CC• 10232 Moll Stop: CC-10232

Washington. DC 20580 Wash1nuton, DC 20580 (202) 326-2991 (202) 326-3673

DATE ISSUED ,~ COMMIS R'S SIGNATURE I

INSTRUCTIONS AND NOTICES YOUR RIGHTS TO REGULATORY ENFORCEMENT FAIRNESS The delivery of this demand to you by any method prescribed by the Commission's The FTC has a longstanding commitment to a fair regulatory enforcement environment. Rules of Practice is Jegal service and rnay subjeci you to a penalty imposed by /aw for If you are a sm.ill business (under Small Bus,ness Administration standards), you have failure to oomp'y, The production of documents or the submission of answers and report a right to contact the Small Business Administration's National OmbUdsmai'\ at 1-88&in response to :his demand must be made under a sworn certificate, 1n !lie form priJ1ted REGFAIR (1-888-734-3247) orwww.sba.gov1ombudsman regarding the fairness of tile on the second page of this demand, by 111e person to whom this demand Is directed or, if compliance and enforcement activlties of the agency. You should understand, hoWever, not a natu.ra( person, by a person or persons having knowledge of 1111! facts and tllat the National Ombudsman cannot change, stop, or delay a federal agency circumstances of such production or responsible for answerfng each Interrogatory or enforcement action. report question. This demand does not require approval by 0MB under the Paperwork Reduction Ad of 1880. The FTC strfc1Jy fort>iCIS retaliatory acts by its employees, and you will not be penalized

for expressing a COl')cel'11 about these acUvitles.

PETITION TO LIM IT OR QUASH TRAVEL EXPENSES The Commission's Rules of Practice require that any petition to limit or quasi) this Use the enclosed travel voucher to claim compensation to which you are entiUed as a demand be fitel within 20 days after service, or, if the return date Is less than 20 days witness for the Commission. The completed travel \/Oucher and this demand should be after service. prior to the return date, The original and twelve copies of the pet~1on must presented to Commission Counsel for payment. If you are permanenUy or tempornnty be filed With the Secretary of the Federal Trade Commission, and one copy should be liVing somewhere other than the address on this demand and it would require e~cessive sent to the Co1T1m1ssion Co11nsel n<1med In Item 5. travel for you to appear, you must get plior approval from Commission Counsel.

A copy of the Commission's Rules of Practice is available online at htt~ [email protected]~ . Paper copies are available upon request

FTC Form 144 (rev 2/08)


Form of Certificate of Compliance*

IM/e do certify that all of the documents and information required by the attached Civil Investigative Demand which are in the possession, custody, contrdl, or knowlecfge of the person to whom the demand is directed have been submitted to a custodian named herein.

If a document responsive to this Civil Investigative Demand has not been submitted, the objections to its submission and the reasons for the objection have been stated.

If an interrogatory or a portion of the request has not been fully answered or a portion of the report has not been completed , the objections to such interrogatory or uncompleted portion and the reasons for the objections have been stated.

Signature

Title

Sworn to before me this day

Notary Public

•in the event that more than one person is responsible for complying with this demand, the certificate shall identify the documents for which each certifying individual was responsible. In place of a sworn statement, the above certificate of co~pliance may be supported by an unswom declaration as provided for by 28 U.S.C. § 1746.

FTC Form 144-Back (rev. 2/08)


UNITED STATES OF AMERICA BEFORE FEDERAL TRADE COMMISSION

COMMISSIONERS: Robert Pitofsky, Chairman Shei)a F. Anthony Mozelle W. Thompson Orson Swindle

RESOLUTION DIRECTING USE OF COMPULSORY PROCESS IN NONPUBLIC INVESTIGATION INTO THE ACTS AND PRACTICES OF UNNAMED PERSONS, PARTNERSIDPS AND CORPORATIONS ENGAGED IN ACTS OR PRACTICES IN

VIOLATION OF 15 U.S.C. § 1692 ET SEO. AND/OR 15 U.S.C. § 45

File No. 992-3140

Nature and Scope of Investigation:

An investigation to determine whether, in the process of collecting debts, unnamed persons, partnerships or corporations may be engaging in, or may have engaged in, acts or practices in vio)ation of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq .. and/or Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, as amended. Such investigation shall, in addition, determine whether Commission action to obtain redress of injury to consumers or others would be in the public interest.

The Federal Trade Commission hereby resolves and directs that any and all compulsory processes available to it be used in connection with this investigation.

Authority to Conduct Investigation:

Sections 6, 9, 10, and 20 of the Federal Trade Commission Act, 15 U.S.C. §§ 46, 49, 50 and 57b-1, as amended; FTC Procedures and Rules of Practice, 16 C.F.R 1.1 et~- and supplements thereto.

Title VIII of the Consumer Credit Protection Act, Section 814, 15 U.S.C. § 16921.

By direction of the Commission.

Dated: April 15, 1999

~j_{lU_ Donald S. Clark Secretary


CIVIL INVESTIGA Tl VE DEMAND SCHEDULE FOR PRODUCTION OF DOCUMENTS AND

ANSWERS TO WRITTEN INTERROGATORIES

I. DEFINITIONS

As used in this Civj) Investigative Demand, the following definitions shall apply:

A. "And," as well as "or," shall be construed both conjtmctively and disjunctively, as necessary, in order to bring within the scope of any specification in this Schedule all infonnation that otherwise might be construed to be outside the scope of the specification.

8. "Any" shall be construed to include "all," and "all" shall be construed to include the word "any."

C. "CID" shall mean the Civil Investigative Demand, including the attached Resolution and this Schedule, and including the Defmitions, Instructions, and Specifications.

D, "Company" shall mean "AFR Financial LLC" its whoJly or partially owned subsidiaries, w1incorporated divisions, joint ventures, operations under assumed names, and affiliates, and all directors, officers, employees, agents, consultants, and other persons working for or on behalf of the foregoing.

E. "Document" shall mean the complete original and any non~identical copy (whether ctifferent from the original because of notations on the copy or otherwise), regardless of origin or location, of any written, typed, printed, transcribed, filmed, punched. or graphic matter of every type and description, however and by whomever prepared, produced, disseminated or made, including but not limited to any advertisement, book, pamphlet, periodical, contract, correspondence, file, invoice, memorandum, note, telegram, report, record, handwritten note, working paper, routing slip, chart, graph, paper, index, map, tabulation, manual, guide, outline, script, abstract, history, calendar, diary, agenda, minute, code book or label. "Document" shall also include all documents, materials, and information, including Electronically Stored Information, within the meaning of the Federal Rules of Civil Procedure.

F. ''Each" sha11 be construed to include "every," and "every" shall be construed to include --each."

G. "Electronically Stored Information" or "ESI" shall mean the complete original and any non-identical copy (whether different from the original because of notations, different metadata, or otherwise), regardless of origin or location, of any writings, drawings. graphs, charts, photographs, sound recordings, images, and other data or data compilations stored in any electronic medium from which information can be obtained either directly or, if necessary, after translation by you into a reasonably usable form. This includes, but is not limited to, electronjc mail , instant messaging, videoconferencing, and other electronic correspondence (whether active, archived, or in a deleted items folder), word processing files, spreadsheets, databases, and video and sound recordings, whether stored on: cards; magnetic or electronic tapes; disks;

Page 1 of 9


computer hard drives, network shares or servers, or other drives; cloud-based platfonns; cell phones, PD As, computer tablets, or other mobile devices; or other storage media.

H. "FTC" or "Commission" shall mean the Federal Trade Commission.

I. "Identify" or "the identity of' shall be construed to require identification of (a) natural persons by name, title, present business affiliation, present business address and telephone number. or if a present business affiliation or present business address is not known, the last known business and home addresses; and (b) businesses or other organizations by name, address, identities of natural persons who are- officers, directors or managers of the business or organization, and contact persons, where applicable.

J. ''Person" shall mean any individual, group, unjncorporated association, limited or general partnership, corporation or other business entity.

K. "Referring to" or "relating to" shall mean discussing. describing, reflecting, containing, analyzing, studying, reporting, commenting on, evidencing, constituting, setting forth, considering, recommending, concerning, or pertaining to, in whole or in part.

L. "You" and "Your" shall mean the Person to whom this CID is issued and includes the Company.

11. INSTRUCTIONS

A. Confidentiality: This CJD relates to an official, nonpublic, law enforcement investigation currently being conducted by the Federal Trade Commission. You are requested not to disclose the existence of this CID until you have been notified that the investigation has been completed. Premature disclosure could impede the Commission ·s investigation and interfere with its enforcement of the law.

B. Sharing of Information: The Commission often makes its fi les available to other civil and criminal federal, state, local, or foreign law enforcement agencies. The Commission may make information supplied by you available to such agencies where appropriate pursuant to the Federal Trade Commission Act and 16 C.F.R. § 4.1 1 (c) and G). Information you provide may be used in any federal, state, or foreign civil or criminal proceeding by the Commission or other agencies.

C. Meet and Confer: You must contact Michael Tankersley at (202) 326-2991 as soon as possible to schedule a meeting (telephonic or in person) to be held within fourteen (14) days after receipt of this CID, or before the deadline for filing a petition to quash, whichever is first, in order to discuss compliance and to address and attempt to resolve all issues, including issues relating to protected status and the form and manner in which claims of protected status will be asserted, and the submission of ESI and other electronic productions as described in these Instructions. Pursuant to 16 C.F.R. § 2. 7(k), you must make avrulable personnel with the knowledge necessary for resolution of the issues relevant to compliance with this CID, including but not limited to personnel wW1 knowledge about your information or records management systems, relevant materials such as organizational charts, and samples of material required to be

Page 2 of9


produced. If any issues relate to ESI, you must make available a person familiar with your ESI systems and methods of retrieval.

D. Applicable time period: UnJess other.wise directed in the CID, the applicable time period for the request shall be from July 1, 2014, until the date of full and complete compliance with this CID.

E. Claims of Privilege: If any material called for by this CID is withheld based on a c1aim of privilege, work product protection, or statutory exemption, or any similar claim (see 16 C.F.R. § 2.7(a)(4)), the claim must be asse1ied no later than the return date of this CID. In addition, pursuant to 16 C.F.R. § 2.1 l(a)(l), submit, together with the claim, a detailed log of the items withheld. The infom1ation in the log shall be of sufficient detail to enable the Commission staff to assess the validity of the claim for each document, including attachments, without disclosing the protected information. Submit the log in a searchable electronic format, and, for each document, including attachments, provide:

1. Document control number(s);

2. The full title (if the withheld material is a document) and the full file name (if the withheld material is in electronic form);

3. A description of the material withheld (for example, a letter, memorandum, or email), including any attachments;

4. The date the material was created;

5. The date the material was sent to each recipient (if d ifferent from the date the material was created);

6. The email addresses, if any, or other electronic contact information to the ex1ent used in the document, from which and to which each document was sent;

7. The names, titles, business addresses, email addresses or other electronic contact information, and relevant affiliations of all authors;

8. The names, titles, business addresses, email addresses or other electronic contact information, and relevant affiliations of all recipients of the material;

9. The names, titles, business addresses, email addresses or other electronic contact infom1ation. and relevant affiliations of all persons copied on the material;

I 0. The factual basis supporting the c1aim that the material is protected; and

11. Any other pertinent information necessary to support the assertion of protected status by operation oflaw.

16 C.F.R. § 2.11 (a)() )(i)-(xi).

Page 3 of 9


In the log, identify by an asterisk each attorney who is an author, recjpient, or person copied on the material. The titles, business addresses, email addresses, and relevant affiliations of all authors, recipients, and persons copied on the material may be provided in a legend appended to the log. However, provide in the log the inforroatjon required by Jn.strnction E.6. 16 C.F.R. § 2.1 l(a)(2). The lead attorney or attorney responsible for supervising the review of the material and who made the determination to assert the claim of protected status must attest to the log. 16 C.F.R. § 2.1l(a)(l).

If only some portion of any responsive material is privHeged, a11 non-privileged portfons of the material must be submitted. Otherwise, produce all responsive information and material without redaction. 16 C.F.R. § 2.11 (c). The failure to provide information sufficient to support a claim of protected status may result in denial of the claim. 16 C.F.R. § 2.1 l(a)(l).

F. Document Retention: You shall retain al I documentary materials used in the preparation of responses to the specifications of this CID. The Commission may require the submission of additional documents at a later time during this investigation. Accordingly, you should suspend any routine procedures for document destruction and take other measures to prevent the destruction of documents that are in any way relevant to this investigation during its pendency, irrespective of whether you believe such docwnents are protected from discovery by privilege or otherwise. See 15 U.S.C. § 50; see also 18 U.S.C. §§ 1505, 1519.

G. Petitions to Limit or Quash: Any petition to limit or quash this CID must be filed with the Secretary of the Commission no later than twenty (20) days after service of the CID, or, if the return date is less than twenty (20) days after service, prior to the return date. Such petition shall set forth all assertions of protected status or other factual and legal objections to the CID, including all appropriate arguments, affidavits, and other supporting documentation. 16 C.F.R. § 2. l0(a){l). Such petition shall not exceed 5,000 words as set forth in 16 C.F .R. § 2. J 0(a)(l) and must include the signed separate statement of counsel required by 16 C.F.R. § 2.10(a)(2). The Commission will not consider petitions to quash or limit absent a pre-filing meet and confer session with Commission staff and, absent extraordinary circumstances, will consider only issues raised during the meet and confer process. 16 C.F.R. § 2.7(k); see also§ 2.11(b).

H. Modification of Specifications: If you believe that the scope of the required search or response for any specification can be narrowed consistent with the Commission's need for documents or infonnation, you are encouraged to discuss such possible modifications, including any modifications of definitions and instructions, with Michael Tankersley at (202) 326-2991. All such modifications must be agreed to in writing by the Bureau Director, or a Deputy Bureau Director. Associate Di.rector. Regional Director. or Assistant Regional Director. 16 C.F.R. § 2.7(]).

1. Certification: A responsible corporate officer or a duly authorized manager of the Company shall certify that the response to this CID is complete. This certification shall be made in the fom1 set out on the back of the CID fom1, or by a declaration under penalty of perjury as provided by 28 U.S.C. § 1746.

Page 4 of9


J. Scope of Search: This CID covers documents and information in your possession or under your actual or constructive custody or control including, but not limited to, documents and information in the possession, custody, or control of your attorneys, accountants, directors, officers, employees, and other agents and consultants, whether or not such documents and information were received from or disseminated to any person or entity.

K. Document Production: You shall produce the documentary material by making all responsive documents available for inspection and copying at your principal place of business. Alternatively, you may elect to send all responsive documents to Michael Tankersley, Federal Trade Commission, 600 Pennsylvania Avenue, NW CC-10232, Washington, DC 2osao. Because postal delivery to the Commission is subject to delay due to heightened security precautions, please use a courier service such as Federal Express or UPS. Notice of your intended method of production shall be given by email or telephone to Michael Tankersley. (202) 326-2991, [email protected] at least five days prior to the return date.

L. Document ldentification: Documents that may be responsive to more than one specification of this CID need not be submitted more than once; however, your response should indicate, for each document submitted, each specification to which the document is responsive. lf any documents responsive to this CID have been previously supplied to the Commission, you may comply with this CID by identitying the document(s) previously provided and the date of submission, Documents should be produced in the order in which they appear in your files or as electronically stored and without being manipulated or otherwise rearranged; if documents are removed from their original folders, binders, covers, containers, or electronic source in order to be produced, then the documents shall be identified in a manner so as to clearly specify the folder, binder, cover, container, or electronic media or file paths from which such documents came. In addition, number all documents in your submission with a unique Bates identifier, and indicate the total number of documents in your submission.

M. Production of Copies: Unless otherwise stated, legible photocopies (or electronically rendered images or digital copies of native electronic files) may be submitted in lieu oforiginal documents, provided that the originals are retained in their state at the time of receipt of this Cl D. Further, copies of originals may be submitted in lieu of originals only if they are true, correct, and complete copies of the original documents; provjded, however, that submission of a copy shall constitute a waiver of any c laim as to the authenticity ofthe copy should it be necessary to introduce such copy into evidence in any Commission proceeding or court of law; and provjded further that you shall retain the original documents and produce them to Commission staff upon request. Copies of marketing materials and advertisements shall be produced in color, and copies of other materials shall be produced in color if necessary to interpret them or render them intelligible.

N. Electronic Submission of Documents: See the attached "Federal Trade Commission, Bureau of Consumer Protection Production Requirements," which details all requirements for submission of information, generally requiring that files be produced in native form and specifying the metadata to be produced. As noted in the attachment, some items require d iscussion with the FTC counsel prior to production, which can be part of the general «Meet and Confer" described above. l f you would like to arrange a separate discussion involving persons

Page 5 of9


specifically familiar with your elect;ronically stored infom1ation (ESI) systems and methods of retrieval, make those arrangements with FTC com1sel when scheduJing the general meet and confer discussion.

0. Information Identification: Each specification and subspecification of this CID shall be answered separately and fuJJy in writing under oath. All information submitted shall be clearly and precisely identified as to the specification(s) or subspecification(s) to which it is responsive.

P. Sensitive Personally Identifiable Information: If any material called for by these requests contains sensitive personally identifiable information or sensitive health information of any individual, please contact us before sending those materials to discuss ways to protect such infonnation during production. If that infonnation will not be redacted, contact us to discuss encrypting any electronic copies of such material with encryption software such as SecureZip and provide the encryption key in a separate communication.

For purposes of these requests, sensitive personally identifiable information includes: an individual 's Social Security number alone; or an individual's name or address or phone number in combination with one or more of the following: date of birth; Social Security number; driver's license number or other state identiiication number or a foreign country equivalent; passport number; financial account number; credit card number; or debit card number. Sensitive health infonnation includes medica1 records and other individually identifiable health information relating to the past, present, or future physical or mental health or conditions of an individual, the provision of health care to an individual, or the past, present, or future payment for the provision of health care to an individual.

Q. Certification of Records of Regularly Conducted Activity: Attached is a Certification of Records of Regularly Conducted Activity, which may reduce the need to subpoena the Company to testify at future proceedings in order to establish the admissibility of documents produced in response to this CID. You are asked to execute this Certification and provide it with your response.

Page 6 of9


III. REQUESTS FOR PRODUCTION OF DOCUMENTS

Produce the following:

1. All documents referring to "Fast Cash Debt," which is defined to mean debt portfolios, debt or loans:

1. marketed under the names 500 Fast Cash, US Fast Cash, 500 FC, OneClickCash, Advantage Cash Services, Ameriloan, Star Cash Processing, United Cash Loans, S00fastcash.com, ameriloan.com, unitedcashloans.com, usfastcash.com, or onclickcash.com;

11. issued by Red Cedar Services, Inc., Red Cedar Services, LLC, MNE Services, Inc., SFS, Inc., or Capital Receivables Group, LLC; or

111. serviced by AMG Services, Inc.

This request includes, but is not limited to:

A. All documents concerning any proposed or consummated purchase of Fast Cash Debt, including electronic mail, text messages, audio messages, and data compilations;

B. Banking and wire records regarding purchase of Fast Cash Debt, refunds or return of payments for Fast Cash Debt;

C. All documents concerning the ownership, title, validity and source of Fast Cash Debt;

D. All documents concerning authority to collect, sell, distribute or transfer Fast Cash Debt, or to act as agent for anyone in connection with Fast Cash Debt;

E. All documents containing instructions to cease collection of Fast Cash Debt;

F. All docwnents concerning payments collected for Fa.st Cash Debt obligations, including calculations of gross or net revenue associated with Fast Cash Debt collection;

G. All documents concerning complaints about demands for repayment of Fast Cash Debt; and

H. All spreadsheets or portfolios listing Fast Cash Debt.

2. Your articles of organization, by-laws. organizational charts, and any other organizational documents for the Company.

3. Documents sufficient to determine the Company' s (i) gross revenue; (ii) gross revenue from third-party debt collection; and (iii) revenue from debt collection net of amounts, if any, paid to creditors that provided debts for collection; and (iv) revenue from debt collection net of compensation paid to collection agents during 2015 and 2016.

Page 7 of9


4. All documents in use during any part of the applicable period that describe the Company' s:

A. policies, procedures or practices that apply if a consumer indicates, orally or in writing, that he or she disputes a debt or any portion of the debt, disputes the accuracy or completeness of any information provided in validation of the debt, or otherwise questions the validity of a debt for which the Company has requested payment; and

B. policies, procedures and practices for investigating questions regarding debts or verifying the validity of purchased debt acquired from others.

IV. WRITTEN INTERROGATORIES

Provide answers to each specification and sub-specification below, separately and fully in writing and under oath.

1. Identify the owners and officers of the Company.

2. Describe the size, general organization and business operations of the Company.

3. Identify any affiliated business organizations involved in the Company' s debt collection. debt buying or debt selling activities, and describe the role of these business organizations.

4. For each fiscal quarter of the applicable time period during which the Company operated, state the number of individuals employed by the Company: (a) full-time in any position; (b) full~time as collection agents; (c) parMfo1e in any position; and (d) part-time as collection agents.

5. Identify any Person to which the Company sold or transmitted information concerning Fast Cash Debt.

6. Identify each Person that communicated with the Company concerning the proposed or consummated purchase of Fast Cash Debt.

7. Describe tbe Company' s business relationship with any Person that provided or proposed to provide Fast Cash Debt to the Company for any purpose.

8. Describe any information that was given to or acquired by the Company about the source and chain of title of Fast Cash Debt, and identify the source of the infonnation.

9. State the amount that the Company collected to repay Fast Cash Debt.

I 0. State the date that the Company began efforts to collect on Fast Cash Debt.

11. State the date that the Company ceased efforts to collect on Fast Cash Debt.

12. For calendar year 2015, state the Company' s revenue in the followjng categories: (i) gross revenue; (ii) gross :revenue from third-party debt collection; and (iii) revenue from

Page 8 of9


debt collection net of amounts, if any, paid to creditors that provided debts for collection; and (iv) revenue from debt collection net of compensation paid to collection agents.

13. D~scribe any unwritten policies, procedures or practices that the Company used during any part of the applicable period for:

(a) responding when a consumer inclicates. oraJly or in writing, that he or she disputes a debt or any portion of the debt, disputes the accuracy or completeness of any information provided in validation of the debt, or otherwise questions the validity of a debt for which the Company has requested payment; and

(b) investigating questions regarding debts or verifying the validity of purchased debt acquired from others.

14. For each document responsive to Request for Production 4 and each policy, procedure or practice responsive to Interrogatory 13, state the period during which the Company used the document or policy, procedure or practice.

Page 9 of9


Federal Trade Commission, Bureau of Consumer Protection Production Requirements

Submit all documents according to the instructions, below. Some instructions require discussion with FTC counsel prior to production, which can be part of a general ''Meet and Confer" between the parties or a separate discussion involving persons specifically familiar with your electronically stored infonnation (ESI) systems and methods of retrieval.

Tvpes of Files

l. Native or Near-Native Files

a. Whenever possible, produce responsive ESI in its native form; that is, in the form in which the information was customarily created, used and stored by the native application employed by the producing party in the ordinary course of business (i.e., .doc, .xJs, .ppt, .pdf).

b. If production of an ESI item in its native form is infeasible, it may be produced in a nearnative form (i.e., there is not a material Joss of content, structure or functionality as compared to the native form) that the FTC agrees to prior to production.

c. Native files containing embedded fi les must have those files extracted, produced in their native form in accordance with # l .a., and have the parent/child relationship identified in the accompanying production metadata.

2. Databases

a. Microsoft Access databases may be produced in either .mdb or .accdb format.

b. Discuss all other database fonnats with the FTC prior to production.

3. Multimedia

a. Multimedia files (i.e., audio, video) may be produced in .mp3 or .mp4 fonnats.

b. Discuss production of multimedia (i.e., audio, video) in other file formats with the FTC prior to production.

4. Discuss production of instant messages, CRM, proprietary applications, and any other type of ES! not specifically referenced in #1, 2. or 3 with the FTC prior to production.

S. Hard Copy Documents

a. Scan in an electronic format documents stored in hard copy in the ordinary course of business.

b. Produce scanned documents as 300 DPl individual multi-page PDFs per document. For marketing materials and where necessary to interpret documents or render them jntelligible, submit documents in color.

c. Produce scanned documents with embedded searchable te>..1_

d. Produce hard copy documents in the order in which they appear in your files and without being manipulated or otherwise rearranged,

e. Treat documents kept in folders or binders as family members. Scan the cover of a binder or folder separately and have it serve as the parent document. Scan each document within a folder or binder as an individual document and have it serve as a child to the parent folder or binder.

BCP Production Requirements-1


6. Redacted Documents

a. Produce ESl requiring redaction in a near native searchable PDF fonnat.

b. Produce _redacted documents as individual multi-page PDFs per document.

c. Produce redacted documents with embedded searchable text.

d. If hard copy docwnents require redaction, follow all requirements laid out io #5.

De-duplication, Email Threading, and Passwords

7. De-duplication

a. De-duplication based on l\IDS or SHA-1 hash value may be conducted wit.run a custodian's set of files without FTC approval so long as the FTC is notified of the intent to de-duplicate prior to production.

b. Discuss de-duplication of any other scope or means with the FTC prior to production.

8. Use of email threading software must be discussed with the FTC prior to production.

9. For password protected files, remove their passwords prior to production. If password removal is not possible, provide a cross reference file including original filename, production filename, and the respective password.

Production Metadata

10. Family Relationships: Regardless of form of production, preserve the parent/child relationship in all files as follows:

a. Produce attachments as separate docw11ents and number them consecutively to the parent file.

b. Complete the ParentlD metadata field for each attachment.

11. Document Numbering and File Naming

a. Each docwnent must have a unique document identifier ("DOCIO") consisting of a prefix and 7-digit number ( e.g., ABC00O000 1) as follows:

1. The prefix of the filename must reflect a unique alphanumeric designation, not to exceed seven (7) characters identifying the producing party. This prefix must remain consistent across all productions.

11. The next seven (7) digits must be a unique, consecutive numeric value assigned to the item by the producing party. Pad this value with leading zeroes as needed to preserve its 7-digit length.

iii. Do not use a space to separate the prefix from nwnbers.

b. Name each native or near native file, with its corresponding DOCID number and appropriate file extension (e.g., ABC00O000l.doc).

12. Load File Format

a. Produce metadata in a delimited text file (.DAT) for each item included in the production. The first line of the delimited text file must contai11 the fi eld names. Each subsequent line must contain the metadata fo.r each produced document.

b. Use these delimiters in the delimited data load file:



Description Symbol ASCil Code Field Separator ~ 020 Quote Character I> 254 New Line ® 174 Multiple Field Entries

' 059

13. The following chart describes the required metadata for native, scanned, and redacted documents. lf you want to submit additional metadata, discuss with the FTC prior to production.

Production Metadata Field Name Native 1 Scanned Redacted Format DOCID y y y Alphanumeric (see #1 1 above) PARENTID y y y Alphanumeric NATIVELINK y y y Alphanumeric CUSTODIAN y y y Alphanumeric RESPSPEC y y y Alphanlm1eric (question# record

responds to) ORIG FILENAME y y y Alphanumeric SOURCE y y y Alphanumeric SOURCEFILEP ATH y y y Alphanumeric ORIGPATH y y y AJ phanumeric CONFIDENTIAL y y y Boolean - YIN HASH y y y Alphanumeric From y y y Alphanumeric To y y y Alphanumeric cc y y y Alphanumeric BCC y y y Alphanumeric ErnaiJSubject y y y Alphanumeric DateSent y y y MM/DD/YYYY HH:MM:SS AM/PM DateRcvd y y y MM/DD/YYYY HH:MM:SS AM/PM Author y y y Alphanumeric Subject y y y Alphanumeric DateCreated y y y MM/DDIYYYY HH:MM:SS AM/PM DateLastMod y y y MM/DD/YYYY HH:MM:SS AM/PM

Production Media

14. Prior to production, scan all media and data contained therein for viruses and confirm the media and data is virus free.



15. For productions smalJer than 50 GB. the FTC can accept electronic file transfer via FTC-hosted secure fiJe transfer protocol. Contact the FTC to request this option. The FTC cannot accept files via Dropbox,, Google Drive, or other third-party file transfer sites,

I 6. Use the least amount of media necessary for productions. Acceptable media formats are optical discs (CD, DVD), flash drives, and hard drives, Format all media for use with Windows 7.

I 7. Data encryption tools may be employed to protect privileged or other personal or private information. Discuss encryption formats with the FTC prior to production. Pi:ovide encryption passwords in advance of delivery, under separate cover.

18. Mark the exterior of all packages containing electronic media sent through the U.S. Postal Service or other delivery services as follows:

MAGNETIC MEDIA - DO NOT X-RAY MAY BE OPENED FOR POSTAL INSPECTION.

19, Provide a production transmittal letter with all productions which includes:

a. A unique production number (e.g., Volume I).

b. Date of production.

c. The numeric range of documents included in the production.

d. The number of documents included in the production.




PETITION EXHIBIT 6

FTC Resolution No. 992-3140 (Apr. 15, 1999)

UNITED STATES OF AMERICA BEFORE FEDERAL TRADE COMMISSION

COMMISSIONERS: Robert Pitofsky, Chairman Sheila F. Anthony Mozelle W. Thompson Orson Swindle

RESOLUTION DIRECTING USE OF COMPULSORY PROCESS IN NONPUBLIC INVESTIGATION INTO THE ACTS AND PRACTICES OF UNNAMED PERSONS, PARTNERSHIPS AND CORPORATIONS ENGAGED IN ACTS OR PRACTICES IN

VIOLATION OF 15 U.S.C. § 1692 ET SEO. AND/OR 15 U.S.C. § 45

File No. 992-3140

Nature and Scope of Investigation:

An investigation to determine whether, in the process of collecting debts, unnamed persons, partnersrups or corporations may be engaging in, or may have engaged in, acts or practices in violation of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq .. and/or Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, as amended. Such investigation shall, in addition, determine whether Commission action to obtain redress of injury to consumers or others would be in the public interest.

The Federal Trade Commission hereby resolves and directs that any and all compulsory processes available to it be used in connection with this investigation.

Authority to Conduct Investigation:

Sections 6, 9, 10, and 20 of the Federal Trade Commission Act, 15 U.S.C. §§ 46, 49, 50 and 57b-l, as amended; FTC Procedures and Rules of Practice, 16 C.F.R 1.1 et~- and supplements thereto.

Title VIII of the Consumer Credit Protection Act, Section 814, 15 U.S.C. § 16921.

By direction of the Commission.

~j_ClJ,e_ Donald S. Clark Secretary

Dated: April 15, 1999



PETITION EXHIBIT 7

Letter from Donald E. Pinaud, Jr., Kattman & Pinaud, P.A., to

FTC attorney Michael Tankersley (Apr. 5, 2016)

-~-~ KATTMAN

··•-.- _ •. ,...,. .... ~. ~~

__,,,,. PINAUD

........... = ~~. PROFESSIONAL ASSOCIATION

ATTORNEYS AT LAW

4069 Atlantic Boulevard Jacksonville, Florida 32207

Telephone (904) 398-1229 Fax (904) 398-1568

John F. Kattman Beatrix B. Trado

Donald E. Pinaud, Jr. Certified Legal Assistant

April 5, 2016

Michael Tankersley Federal Trade Commission 600 Pennsylvania A venue, NW Mail Stop: CC-10232 Washington, DC 20580

Re: Our Clients: AFR Financial, LLC., and Kimona Fuartado

Dear Mr. Tankersley:

I have been retained by AFR Financial, LLC., and Kimona Fuartado, to assist them in .re.spooding to your Civil Investigative Demand you have served upon them. Please direct all communications in this matter to my attention, and do_no_t. cont~~t-my clients directly in the future. · ·

We wish to be as helpful and forthcoming as possible, but obviously, I need to understand exactly what you are trying to discover and what is being investigated, before I can properly advise my clients as to what they need to do. Will you please contact me, in writing, and explain to me exactly what or who you are investigating, and why exactly you want information from my clients? Again, as an attorney, I am obligated to advise them regarding their cooperation with you. Please provide me this information so we can best be able -to.be of the most assistance.

Obviousiy, we cannot comply with your requested date of a response by April 8, 2016. I will await the information from you I have requested, then we will co-operate fully as is appropriate without any delay. You can contact me in writing at the address above, or email me at dp(q~iaxjustice.com . ..

Wlth warmest regards, I remain

DEP/adl cc: clients, .



PETITION EXHIBIT 8

Letter from FTC attorney Michael Tankersley to Donald E. Pinaud, Jr.,

Kattman & Pinaud, P.A.

(Apr. 12, 2016)

Tankersley, Michael

From: Tankersley, Michael

Sent: Tuesday, April 12, 2016 5:54 PM

To: '[email protected]'

Subject: AFR Financial, FTC Civil Investigative Demand

Attachments: SKM BT_ 42316041217530.pdf

Please see the attached response to your letter.

Michael Tankersley Federal Trade Commission Bureau of Consumer Protection 600 Pennsylvania Ave., NW CC-I 0232 Washington, DC 20580 (202) 326-2991

4


Washington, DC 20580 (202) 326-2991

<SKMBT_ 42316041217530.pdf>

3


UNITED ST A TES OF AMERICA

Federal Trade Commission WASHINGTON, D.C. 20580

April 12, 2016 By Telecopier: (904) 398-1568

Donald E. Pinaud, Jr. Kartman & Pinaud 4069 Atlantic Boulevard Jacksonville, FL 32207

Re: Civil Investigative Demand to AFR Financial, LLC

Dear Mr. Pinaud:

I am writing to respond to your April 5 letter concerning the Civil Investigative Demand addressed to AFR Financial, LLC, dated March 23, 2016.

The Federal Trade Commission is conducting a confidential law enforcement investigation into practices that may violate the Fair Debt Collection Practices Act and Federal Trade Commission Act. The Demand to AFR Financial, LLC specifically seeks information concerning the collection of Fast Case Debt. Information concerning the details of this investigation is confidential. The Commission has separately brought a civil action to stop collection of debt circulated under the name 500 Fast Cash. See FTC and the People of New York v. Brace, Case No. 1: l 5-cv-00875-RJA (W.D.N.Y., filed Oct. 5, 2015).

I have spoken with Kimona Fuartado and understand that AFT Financial, LLC, collected on debt portfolios covered by the Civil Investigative Demand and has some responsive documentation. As you acknowledge, the date for responding to the Civil Investigative Demand has already passed. Please have AFR Financial, LLC, provide responses to the interrogatories and produce the records in its possession, custody or control that are responsive to the Civil Investigative Demand as soon as possible.

Sincerely,

Michael E. Tankersley

Staff Attorney

Bureau of Consumer Protection



PETITION EXHIBIT 9

Email exchange between FTC attorney Michael Tankersley and Donald E. Pinaud, Jr., Kattman & Pinaud, P.A.

(Apr. 13, 2016)

Tankersley, Michael

From: Tankersley, Michael Sent: Wednesday, April 13, 2016 11:36 AM To: 'Don Pinaud' Subject: RE: AFR Financia l, FTC Civil Investigative Demand

Follow Up Flag: Follow up Flag Status: Flagged

Dear Mr. Pinaud:

The Civil Investigative Demand does not accuse, suggest or presume any wrongdoing by AFR Financial. We are gathering the information covered by the Demand to evaluate whether any wrongdoing has occurred and, if so, who may be responsible.

Michael Tankersley Federal Trade Commission (202) 326-2991

From: Don Pinaud [mailto:[email protected]] Sent: Wednesday, April 13, 2016 9:43 AM To: Tankersley, Michael Subject: Re: AFR Financial, FTC Civil Investigative Demand

M r. Tankersley,

Confidential or not, I need to know if you are looking at suggesting or investigating any wrongdoing by my clients. That's my job. I have to know that before we cooperate for obvious reasons. So are you just looking for info in support of a case against others, or are my clients potentially in jeopardy.

Thank you.

Don Pinaud Kattman & Pinaud, P.A. 4069 Atlantic Blvd. Jacksonville, Florida 32207 (904)398-1229 JaxJustice.com

On Apr 12, 2016, at 5:53 PM, Tankersley, Michael <[email protected]> wrote:

Please see the attached response to your letter.

Michael Tankersley Federal Trade Commission Bureau of Consumer Protection 600 Pennsylvania Ave., NW CC-10232

2



PETITION EXHIBIT 10

Email from FTC attorney Michael Tankersley to Donald E. Pinaud, Jr.,


(May 27, 2016)

Tankersley, Michael

From: Tankersley, Michael Sent: Friday, May 27, 2016 10:26 AM To: 'Don Pinaud' Subject: RE: AFR Financial, FTC Civil Investigative Demand

Dear Mr. Pinaud:

Please give me a call about the long overdue response to this Civil Investigative Demand.

Even if AFR Financial is still locating materials, we need an interim response to show progress on complying with the Civil Investigative Demand.

Michael Tankersley Federal Trade Commission Bureau of Consumer Protection 600 Pennsylvania Ave., NW CC-10232 Washington, DC 20580 (202) 326-2991

1



PETITION EXHIBIT 11

Email from FTC attorney Michael Tankersley to Donald E. Pinaud, Jr.,


(June 7, 2016)

Tankersley, Michael

From: Tankersley, Michael Sent: Tuesday, June 07, 2016 10:44 AM

To: 'Don Pinaud'

Subject: AFR Financial, FTC Civil Investigative Demand

Dear Mr. Pinaud:

We still have received no response to this long overdue response to this Civil Investigative Demand. Please give me a call immediately if your client still intends to respond.

Our next step when the recipient of a CID has not responded is to bring an enforcement action in federal district court. A proper response from the company could avoid such a proceeding.

Michael Tanker~ley Federal Trade Commission Bureau of Consumer Protection 600 Pennsylvania Ave., NW CC-1 0232 Washington, DC 20580 (202) 326-2991

1



PETITION EXHIBIT 12

Email exchange between FTC attorney Michael Tankersley and Donald E. Pinaud, Jr., Kattman & Pinaud, P.A.

(July 15, 2016)


From: dp To: Tankersley, Michael Subject: RE: AFR Financial, FTC Civil Investigative Demand Date: Friday, July 15, 2016 10:37:50 AM

I have an appointment with her the week of August 1. That was the earliest our calendars could accomodate. I apologize for the delay.

Best

Don

Sent from my Verizon, Samsung Galaxy smartphone

-------- Original message --------From: "Tankersley, Michael" <[email protected]> Date: 7/15/16 10:30 AM (GMT-05:00) To: 'Don Pinaud' <[email protected]> Subject: RE: AFR Financial, FTC Civil Investigative Demand

Dear Mr. Pinaud:

We still have received no response to this long overdue response to this Civil Investigative Demand. This matter has now been referred to the FTC’s Office of General Counsel to initiate an enforcement action in federal district court.

A copy of a recent ruling from the Middle District of Florida regarding an FTC petition for enforcement is attached.

Michael Tankersley

Federal Trade Commission

Bureau of Consumer Protection

600 Pennsylvania Ave., NW

CC-10232

Washington, DC 20580

(202) 326-2991

mailto:[email protected]

mailto:[email protected]





) Petitioner, )

) Misc. No. ________________ v. )


) Respondent. )

) )

(PROPOSED) ORDER TO SHOW CAUSE WHY RESPONDENT AFR FINANCIAL LLC

SHOULD NOT COMPLY WITH FEDERAL TRADE COMMISSION ADMINISTRATIVE INVESTIGATIVE PROCESS

Pursuant to the authority conferred by Sections 16 and 20 of the Federal Trade

Commission Act, 15 U.S.C. §§ 56 and 57b-1, Petitioner, the Federal Trade Commission

(FTC), has invoked the aid of this Court for an order requiring Respondent, AFR

Financial LLC, to comply in full with the March 23, 2016 civil investigative demand

(CID) issued in aid of an FTC investigation (FTC File No. 1523038).

The Court has considered the Commission’s Petition for an Order to Enforce

Administrative Investigative Process and the papers filed in support thereof; and it

appears to the Court that Petitioner has shown good cause for the entry of this Order. It is

by this Court hereby


ORDERED that Respondent AFR Financial LLC appear at _____ a.m./p.m. on

the _____ day of ___________, 2016, in Courtroom No. ________ of the Bryan Simpson

United States Courthouse for the Middle District of Florida, 300 North Hogan Street, in

Jacksonville, Florida, and show cause, if any there be, why this Court should not grant

said Petition and enter an Order enforcing the CID and directing it to produce the

documents and information requested by the CID within ten (10) days of the receipt of

the Court’s enforcement order, or at such later time as may be directed by the FTC.

Unless the Court determines otherwise, notwithstanding the filing or pendency of any

procedural or other motions, all issues raised by the Petition and supporting papers, and

any opposition to the Petition, will be considered at the hearing on the Petition, and the

allegations of said Petition shall be deemed admitted unless controverted by a specific

factual showing.

IT IS FURTHER ORDERED that, if Respondent believes it necessary for the

Court to hear live testimony, it must file an affidavit reflecting such testimony (or if a

proposed witness is not available to provide such an affidavit, a specific description of

the witness’s proposed testimony) and explain why Respondent believes live testimony is

required.

IT IS FURTHER ORDERED that, if Respondent intends to file pleadings,

affidavits, exhibits, motions or other papers in opposition to said Petition or to the entry

of the Order requested therein, such papers must be filed with the Court and received by

Petitioner’s counsel by __________ a.m./p.m. on ____________________, 2016. Such

submission shall include, in the case of any affidavits or exhibits not previously

___________________________________


submitted, or objections not previously made to the Federal Trade Commission, an

explanation as to why such objections were not made or such papers or information not

submitted to the Commission. Any reply by Petitioner shall be filed with the Court and

received by Respondents by _________ a.m./p.m. on ________________________,

2016.

IT IS FURTHER ORDERED, pursuant to Fed. R. Civ. P. 26(a)(1)(B)(v) and

81(a)(5), that this is a summary proceeding and that no party shall be entitled to discovery

without further order of the Court upon a specific showing of need; and that the dates for

a hearing and the filing of papers established by this Order shall not be altered without

prior order of the Court upon good cause shown; and

IT IS FURTHER ORDERED, pursuant to Fed. R. Civ. P. 81(a)(5), that a copy of

this Order and copies of said Petition and Memorandum in support thereof filed herein,

be served forthwith by Petitioner upon Respondent or its counsel by personal service, or

by certified or registered mail with return receipt requested, or by overnight express

delivery service.

SO ORDERED:

United States Magistrate Judge

Dated: _______________, Jacksonville, Florida


PRESENTED BY: DAVID C. SHONKA Acting General Counsel

LESLIE RICE MELMAN Assistant General Counsel for Litigation

BRADLEY GROSSMAN, Litigation Counsel Of Counsel: Office of the General Counsel

Federal Trade Commission MICHAEL TANKERSLEY 600 Pennsylvania Ave., N.W. Division of Financial Practices Washington, D.C. 20580

(202) 326-2994 (202) 326-2477 (fax)

Dated: July 29, 2016 [email protected]

JS 44 (Rev. 12/12) CIVIL COVER SHEET The JS 44 civil cover sheet and the infonnation contained herein .n~ither replace nor supple~ent the lil.ing and service of p!eadings or other papers as reguired b)' law, except as provided by local rules of court. This fonn, approved by the Judicial Conference of the Umted States in September 1974, 1s required for the use of the Clerk ofCoun for the purpose of initiating the civil docket sheet. (Sl:J-: INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)

I. (a) PLAINTIFFS DEFENDANTS Federal Trade Commission AFR Financial LLC

(b) County of Residence ofFirst Listed Plaintiff County of Residence ofFirst Listed Defendant -'D.,...u.%'va .. l..._ ______ _ (EXC/iPT IN 11.S. PI.AIN11FFCASESJ (IN U.S. Pl.A/NT/FF CASES ONl,Y)

NOTE: IN LAND CONDEMNATION CASES, USE 11fE LOCATION OF 11fE TRACT OF LAND JNVOL VED.

(c) Attorneys (Firm Nan:e, Addn,:n, and Telephone Number) Attorneys (I/ KntMn)

Bradley D. Grossman, 600 Pennsylvania Avenue, N.W., Washington, Donald E. Pinaud, Jr., Kattman & Pinaud, 4069 Atlantic Blvd., D.C.20580;202-326-2994 Jacksonville, FL 32207; 904-398-1229

II, BASIS OF JURISDICTION (Pla«an "X" mOneBoxOn/y) Ill. CITIZENSHIP OF PRINCIPAL PARTIEStPlattan "X" 1none&uforPlainilfl (J,orDi,·enltyCmnOnly) andOneBoxforDe/endant)

DIil U.S. Government 03 Fedefal Question PTF DEF PTF DEF Plaintiff (US, (im-emment Not a Pany) Citizen of This State O I O lncorponued or Principal Plaec O 4 0 4

of Business In This SUlte

02 U.S. Gonmunent 04 Di,'fflAty Citmn of Another Swe 0 2 CJ 2 lncorponued and Principal Place CJ S CJS Dc:fend1111t (Indicate Citizenship of Partle.c In Item Ill) of Business In Anodter State

0 3 0 3 Fon:ign Nation 0 6 0 6

IV, NATURE OF SUIT(Pla«an "X"lnOneBoxOniJ') Ir,.-._ .... .-,·· ·:: . ..:::::=_,:--~==·•:;•.·· ~'!.S) ::•···· ..

0 I 10 Insurance PERSONAL INJURY PERSONAL INJURY 0 625 Drug Related Seizure o 422 Appeal 28 use 158 � 37S False Claims Act O 120 Marine CJ 310 Airplane 0 36S Personal Injury • of Property 21 USC881 0 423 Withdrawal 0 400 Swe Reappottionment 0 130 Miller Act O 3 IS Airplano Product Product Liability 0 6900ther 28 USC 157 0 410 Antitrust 0 140 Ncgotiiible Instrument 0 ISO Rcco,-csy of Overpayment

Li:ibility O 320 Assault, Libel &

0 367HealthCare/ Pharmaceutical G::J '

0 430 B:mks and Banking =,--;] J!I 4SO Commerce

& Enforcement of Jud8111cnl Sl1111der Personal lnjwy 0 820 Copyrights CJ 460 Dc:p0118tion 0 ISi Mcclicmt Act CJ 330 Fedeial Employers' Product Liability 0 830 Patent 0 470 Racketeer Influenced and 0 IS2 Recovery of Defaulted Lfability 0 368 Asbestos Personal 0 840Tradmuuk Conupt Organizations

Student Loans O 340 M:irine (Excludes Veterans) 0 34S Marine ProdUd

htjury Product Liability -., 0 480 Consumer Credit

0 490 Cable/Sal TV 0 IS3 Recovery ofO.,:rpayment Liability PERSONAL PROPERTY CJ 710 FairLaborStandards 0 861 HIA ( 139Sff) 0 8SO s-.rities/Commoditics/

of Veteran's Benelits O 350 Motor Vehicle 0 370 Ol11cr Fraud Act 0 862 Blm Lung (923) Excb:mge 0 160 Stockholders' Suits O JSS Motor Vehicle 0 371 Truth in Lending 0 720 Labor/Managemenl 0 863 DIWC/DIWW (40S(g)) 0 890 Other Statutoiy Ac1ions CJ 190 Olher Conuaci . Product Liability 0 380 Other Pcnonal Relations 0 864 SSID Title XVI 0 891 Agricultuml ACls 0 19S Contract Product Liabilily CJ 360 Olhcr Personal Property D11m11ge CJ 740 Railway Labor Act 0 865 RSI (40S(g)) CJ 893 Environmental Matters 0 196 Fnmcbisc lnjmy 0 385 Property Damage 0 75 I Family 1111d Medical 0 89S Freedom of Infonn.ation

0 362 I'asorm lnjmy Product Liability Leave Act Act Medicol Maloractice 0 790 Other Labor Litigation 0 896 Arbitmtion

lc7.3J8111-&P.ROPHR'D,"2:2r;J ~ z::::m GI! ' �� CJ 791 Employee Retirement CJ 899 Administrath·e Procedun: 0 210 Land Condemnation CJ 440 Other Civil Rights Habeas Corpus: Income Security Act 0 870 Taxes (U.S. Plaintiff' Act/Review « Appeal of O 220 Foreclosure CJ 441 Voting O 463 Alien Delllinee or Defendant) Agency Decision 0 230 Rent Lease & Ejectment O 442 Em11loymcn1 0 5 JO Molions to Vacate 0 871 IRS-Thinl Party 0 9SO Constitlllionality of O 240 Torts to Land O 443 Housing/ Sentence 26 use 7609 S1ateStatU1es 0 245 Tort Product Liabilily Accommodalions CJ 530 General 0 290 All Other Real Propeny O 44$ Amer. w/Disabilities - 0 53S De3lb Penalty CDZX:llMMIGRi\lr•••"',.;;;;::,,;ccJ

Employment Other: 0 462 Naturlllization Application 0 446 Amer. w/Disabilities - CJ 540 Mandamus & Other 0 46S Other Immigration

Other O SSO Ci,·il Rights Actions CJ 448 Edw:ation CJ SSS Prison Condition

CJ 560 Civil Detainee -Conditions of Confinement

V, ORIGIN (Pla«an"X"lnOneBarOnly)

)I( I Original a 2 Removed from a J Remanded from � 4 Reinstated or a S Transferred from Proceeding State Court Appellate Court Reopened Another District

(; Ci')

O 6 Multidistrict Litigation

Cite the U.S. Civil Statute under which you are filing (D11 not cite jurudktio,u,J statura unlas divasily): t:1~5~U~·,;:;;s·;.,:;;c~. ~s,;:;;57~b-~1.;:;.ei;.,,_ ___________________________ _

C SE OF CTIO VI. AU A N Brief description of cause: Enforcement of administrative investigative process

VII. REQUESTED IN 0 CHECK IF THIS IS A CLASS ACTION DEMANDS COMPLAINT: UNDER RULE 23, F.R.Cv.P.

CHECK YES only if demanded in complaint:

JURY DEMAND: � Yes )!( No

VIII. RELATED CASE(S) IF ANY {Ste in.,ructiom):

JUDGE DOCKET NUMBER

DATE 7-2 (6 -FOR OFFICE USE ONLY

RECEIPT# AMOUNT APPL Ytl\G IFP JUDGE 3<.\ MAG. JUDGE :::l:R.'t ....
